Loans Mortgage Lenders answers:

Please ignore the poster by the name of MOM, she consistantly posts incorrect mortgage information and will eventually get sued for doing so without a license.

Yes, you can do an FHA mortgage; no it does not have to be a HUD home. FHA requires 3.5% down, but with your credit rating you may want to consider a conventional mortgage. You can get a conventional mortgage with 5% down, you don’t need 20% as “Mom” states. A conventional mortgage is usually the better option if you qualify as the PMI is lower. FHA mortgage have “MIP” not PMI and there is a difference. The FHA MIP is more expensive, has to stay there for at least 5 years and also has an additional 1% up front fee.

Have a qualified loan officer show you both programs side by side and please don’t take advice from unlicensed people, they can steer you in the wrong direction and cost you money.

Loans Mortgage Lenders answers:

Yes you can borrow 95% plus capitise the LMI in Australia. Effectively this is borrowing it as well. You cannot include the stamp duty with a 95% loan. In other words you need about 9% of the purchase price to be able to buy. 5% as a saved deposit and the other 4% to cover purchasing costs.

There is one 95% mortgage available that allows you to get a credit card for $20k at the same interest rate as the home loan as part of the package. The money on the card can be used at settlement which means you can borrow most of the stamp duty as well, depending on how much it is for your purchase.

The exception to this is if you have a guarantee from your parents to back you up. Then you can borrow 105% with no LMI required.

Loans Mortgage Lenders answers:

Lender mortgage insurance and stamp duty can be funded in the current home loan as long as the total amount of lending is below the bank criteria.

For example,

Majority of the bank allow you to borrow up to 95% of the property. Therefore it can include the lenders mortgage insurance and stamp duty as long as the total lending is only 95% of the property. It can also include any settlement fees that you have as well.

You just got to understand that by adding it into your home loan, the repayment is higher and you’ll be paying interest on it throughout the duration of the loan

Loans Mortgage Lenders answers:

I am at a loss as to how you were rejected while in escrow. Once you have reached that stage you are in a position to sign loan docs and closing is about to take place.

The norm for proving income is 2 years of employment with the same employer or in the same career field. This is accomplished by providing W-2 forms, federal income tax forms and in rare cases proof of employment letters sent by the mortgage lender.

It looks as if you would need to find a competent mortgage loan officer as you are getting conflicting stories from the ones you have tried to get pre-approved through.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

Loans Mortgage Lenders answers:

If you would like the loan, i would take it.

Loans Mortgage Lenders answers:

Hi there. I can help.

Www.HomeLendingMadeEasy.com

Loans Mortgage Lenders answers:

Because they made a HUGE profit off it. Its all about the allmighty dollar. Credit card companies dont care if they are charging an old lady 30% interest b/c she was one day late on her payment, whats the difference. All of a sudden, the mortgage lenders are supposed to “care” about the consumer, but no other corporations do. Doesnt make sense. People want to blame others, not take the heat for the fact that they really couldnt afford the 500,000 dollar home with a 50,000 income in the first place. People WANT things, dont care how. But, then, blame everyone else when the crap hits the fan. Thats what is wrong with the world today.

Loans Mortgage Lenders answers:

We’re in a correction that will last at least the next several months which has the potential of becoming a bear market for the next year or two. The problem looks like its not contained as major foreign banks have recently acknowledged related investment losses and mutual funds are selling profitable investments in emerging markets in favor of security of US dollars/treasuries. Even the chinese government has come out to say they believe in the safety of the US dollar. All debt is being repriced not only bcas of subprime mess but bcas debt from already announced LBOs will soon hit the credit market as well. Classic case of over supply. Future M&A will have to be driven by cash but in an economic slowdown, you would think most would preserve cash until they see a light at the end of the tunnel (i.e. Some competitors may not survive a bear market/recession).

As for ur question re reits, the following article may shed some light. Further evidence the mortgage market is shaky.

Loans Mortgage Lenders answers:

Angelo Mozilo is the CEO of Country Wide under investigation…

Loans Mortgage Lenders answers:

Hi I am a real estate agent. Most sub prime lenders are not going bankrupt but because the media was making a big deal about the largest sub prime lender filing bankruptcy. I must have seen that same news event told at least 22 times.

Also one would think, after watching the t.v. News, that folks who bought homes and used a sub prime lender are all going into foreclosure. The facts and data clearly show some are but most are not. In fact, most customers who used sub prime services are making their payments just fine.

As a real estate agent I’ll tell you the truth and reality of the matter is that Subprime doesn’t mean people with horrible credit or only high risk people.

Sub prime means “the majority” of people in the United States. Facts show that the majority of folks in the U.S. Would, if they wanted to buy a house, have to go to a sub prime lender as their FICO scores are not meeting the requirements the banks have now.

In fact the reason the market shot up like it did was “because” of sub prime loans.

People that could never get a house were now qualifying and so you had buyers coming out of the woodwork.

Then as the market hit its peak the banks tightened their requirements and so you saw a slowing of the market.

Most folks think, incorrectly so, that what happened was the steps below.
Step 1. Banks had sub prime loans being offered.
Step 2. Buyers used these loans and it lowered the home values
Step 3. The market then had a crash

The above steps is what the media seems to be perpetuating but its just hogwash because in reality it is the subprime market that caused real estate values to sky rocket.

In reality here is what happened.
Step 1. Banks loosened up their requirements
Step 2. This put a flood of buyers, previously not able to buy, into the market place.
Step 3. With demand being more than the supply, it’s simple economics 101 what happened. Properties became more scarce and so prices shot up
Step 4. Buyers continued buying and prices started to slowly level off. From May of 2006 to about November 2006 they leveled off.
Step 5. Then here is what happened. The banks then tightened their requirements as they saw that values were leveling off. Banks don’t really want to lend money when property values are on the downward motion so they tighten up their qualifications to get very low risk buyers.

That’s what they did. Well that shut out most, not all, but most of the buyers in the pool waiting to buy. Now they couldn’t qualify. Even houses that were in escrow started falling out because the buyer now could not qualify.

That is the true facts of what happened. So when folks on the news or media open their mouths they really don’t know what they are talking about.

Ask me, I was there. I know.

Loans Mortgage Lenders answers:

The fact is that all restructuring “programs” in existence so far are voluntary (for lenders) and fragmented. The fact that so many loans were securitized and sold off makes modification very difficult.

Loans Mortgage Lenders answers:

Lenders never lend money unless they have the property as security in case of default so they can repossess the property. They must have been government guaranteed loans. The government guaranteed to repay the lender the whole amount of money that they were owed. Lenders never loose. There is expected to be 4 million homes repossessed in the United States of America in 2010. (That’s approximately the whole population of New Zealand.)

Loans Mortgage Lenders answers:

The fact you are laid off will hurt not so much because of the reduced income, but because a lender will see it as a sign of unpredictable future employment – in the banker’s mind, if the company laid you off once, they may very well do it again. If you are changing jobs, as long as it is in the same industry and you are being paid in the same way (salary versus commission), it should not be a deal breaker. If it is a whole new line of work for you, that would be a big negative.

Loans Mortgage Lenders answers:

Its not our tax money, they simply increase the money supply or print additional monies, thus devaluing every dollar you and I have. You could call it a tax, if you want to, but I would refer to it as an inflationary tax not an income tax. Quit whining or move, there’s not one thing you’re gonna do to change it, EVER.

Loans Mortgage Lenders answers:

I agree with your other answers and think you should bide your time and you might be in for a real bargain. It is unfortunate for some but beneficial to others, this is the economy as we have known to love and hate!

Loans Mortgage Lenders answers:

I asked this exact question to a local mortgage banker. He said that his company continues to collect the monthly payments for the 30 years. The 2nd company (who bought the loan) pays the 1st company $10 per month to collect the money and forward it to them. I said “What’s the point?” He said they have 10,000 mortgages and each pays $10 per month. The 1st bank gets $100,000 a month and all they have to do is put a stamp on an envelope (43 cents) and forward it on. A cash cow./

Loans Mortgage Lenders answers:

They really can’t with any accuracy, so they will quote you a rate based on the best possible scenario. In a lot of cases they will even low ball the rate because they know you are “shopping” for the best rate.
The low ball is really easy to cover since the lender can always come back and say well your credit is lower so the rate will be higher.

Loans Mortgage Lenders answers:

Top 10 According To Mortgage Bank Magazine

COUNTRYWIDE FINANCIAL CORP Total of Purchase Loans, $42,200,490,000, and Refinance Loans, $49,002,483,000.
WELLS FARGO BANK Total of Purchase Loans, $34,526,107,000, and Refinance Loans, $$41,766,664,000
BANK OF AMERICA Total of Purchase Loans, $20,091,938,000 and Refinance Loans, $38,171,154,000
WASHINGTON MUTUAL BANK FA Total of Purchase Loans, $14,457,275,000 and Refinance Loans, $34,826,884,000
JP MORGAN CHASE BANK Total of Purchase Loans, $11,126,545,000 and Refinance Loans, $24,172,327,000
WORLD SAVINGS BANK Total of Purchase Loans, $3,610,604,000 and Refinance Loans, $18,385,809,000
SUNTRUST MTG./SUNTRUST BANK Total of Purchase Loans, $8,687,454,000 and Refinance Loans, $9,392,690,000
CITIMORTGAGE/CITIBANK Total of Purchase Loans, $6,617,790,000 and Refinance Loans, $10,975,891,000
NEW CENTURY MORTGAGE Total of Purchase Loans, $8,139,892,000 and Refinance Loans, $8,885,123,000
PRIVATE LENDERS Total of Purchase Loans, $9,458,509,000 and Refinance Loans, $6,907,612,000

Loans Mortgage Lenders answers:

It has not changed, but it’s 14-days not 45.

Loans Mortgage Lenders answers:

You can’t use the credit card and you will get the $8,000 tax credit you don’t need to repay.

You could take cash advances on credit cards but then your debt might be to high to get a house.

Loans Mortgage Lenders answers:

Back in September of 1981 rates were 15.38% (looked it up)
Those were the highest rates for people with good credit.
I can’t find anywhere where there is a top limit on how much they can charge you in interest.
Make sure you get at least 3 quotes from 3 different banks…

Loans Mortgage Lenders answers:

Oh ok… I got this for you…

Better check on it… Im pretty sure you’ll discover something

http://www.studentloansmadeez.com

Loans Mortgage Lenders answers:

My husband and I went thru the same thing this year when buying our house. My advice is to keep her off of the mortage if possible. However, the bank will usually use the higher credit score to determinr the amount of the loan. Good Luck!!!

Loans Mortgage Lenders answers:

Go to FICO’s website:

http://www.myfico.com/

It shows in there that with a score of 620 or so you will get an APR of 7.465% for 36 months and your monthly repayment will be $91 for a 13k loan.

Hope that helps.

Loans Mortgage Lenders answers:

Auto finance is what I do for a living and income has nothing to do with interest rate.

Auto loans are based on the following factors period;

1. Loan to value.
2. Term of loan.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes. Only used to see how much payment you qualify for.
9. Credit score/profile.
10. Total debt to income ratio.

With your scores depending on the loan to value ratio your looking at high interest no matter what you buy.

Loans Mortgage Lenders answers:

It sounds as if you have your financials in order. Any financial institution, or mortgage company will work with the borrower to avoid a default (generally nonpayment) on the loan. Start asking your current company questions and research different companies as soon as possible. The more knowledge you have will help you make the best decision for you. Also it helps if you know exacly what you want to do.

Loans Mortgage Lenders answers:

First of all, they did it because it is in human nature to be greedy. As much as you can deny it, everyone out there is a narcissist. You want a better rate, the people who are financing your car want more money, and inevitably interests will conflict. Your rates went up because you made a mistake, and now you need more money. The bank, which has loads of money, ultimately has the upper ground here. They present a rate to you and you can either choose to accept it, or deal with missing car payments and possibly repossession. Maybe you should have bought a used car for a fraction of the price and just about the same level of quality.

Loans Mortgage Lenders answers:

I closed a bunch of credit card accounts I didn’t use. My credit score went down by about 10 points for a month and by the next month I was back to where I was before. Within 3-4 months my credit was better than when I had the accounts open. Unless your applying for a loan tomorrow I would close your unused accounts.

Loans Mortgage Lenders answers:

Hello,

when a client goes tro see an Independent Mortgage Broker, the broker will first of all do a factfind to find out as much as they can about the client. They will then pump this information into a database of mortgage products in order to find the best one in the given circumstances. Banks need to make sure they have competitive rates to finish at the top of these search engines. If the same client goes directly into a bank then there is no comparison and therefore no need to offer such competitive rates.
At the moment in the uK the reverse is actually true. Many banks are offering better deals direct and trying to knock mortgage brokers out. This is called “Dual Pricing”.

Loans Mortgage Lenders answers:

6 children, single and part time in the states would get you no mortgage.

Loans Mortgage Lenders answers:

SC may be able to prevent a garnishment, but they will not interfere with tax seizures, account seizures and liens on property.

Leaving the state does not entitle you to keep the banks money.

Loans Mortgage Lenders answers:

The ones who put people into adjustable rate mortgages (ARM’s), yes, they may very well do that.

In the coming year many ARM’s are set to readjust to rates that will literally drive many families out of their homes, into forclosure, and God only knows where after that. Lucky for me, I get to help families out of situations like that.

The economy does move in cycles, like a clock. Consider 12:00 as the boom in the economy and 6:00 as the recession periods…like the crash of 1987, Y2K, and 9/11. Eventually, the economy rebounded from all of these events. Just as the hands of the clock move around and around, so the economy moves through it’s cycle of “boom and bust.”

Our current savings rate is suffering also. Average Americans spend $1.22 for every $1 they earn and the average family has about $9,000 in credit card debt.

I just feel bad for people who do not understand the economic and stock market cycle and will pull their money out when things start to look bad, only to miss out on all of the growth their money could have experienced once the economic cycle starts to move toward the favorable direction again.

The smart people bought, or at least stayed in, after 9/11 while many people sold. Buy low, sell high, often not as simple as it sounds but it is how the rich get, and stay, rich.

So yeah, you’re right, many mortgage companies will not help the situation and many more will indeed make things worse for a lot of people.

Loans Mortgage Lenders answers:

Sadly no. The lenders will still try to screw us punters and build up their own liquidity. It will need a similar dramatic reduction in the LIBOR rate before mortgage rates in general will start to fall.

Loans Mortgage Lenders answers:

You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-free.totalh.com

Loans Mortgage Lenders answers:

It isn’t true. It isn’t even legal for your bank to charge 2%. No one but your bank can modify your mortgage, and they can not go below legal interest rates. This is just a scam for your 1500 bucks.

Loans Mortgage Lenders answers:

Get your debt to credit ratio under 30% before you even think about a home loan.

Loans Mortgage Lenders answers:

First of all, don’t worry about your ARM going up unless you are getting close to the adjustment date. If you have a 3-year ARM and you just go it, you have 3 years to not worry. Make sure you understand the terms and dates of your ARM. If you don’t, contact your mortgage company immediately and get that information.

You probably won’t do better than your current ARM if you refinance, although fixed rates are pretty low right now. That said, if you are close to the adjustment date, contact a trusted mortgage professional immediately. They will help you analyze the best situation to save you money.

ARMS are not bad. They are useful tools and can save people a lot of money if used correctly. I can assure you, most financial professionals and investors always use ARMs. You just have understand how they work and be careful to know when they are going to adjust and by how much.

Finally, I want to address your question about stated mortgages. Recently, the rules for writing stated mortgages have tightened and regulations have increased. Some companies have run into trouble and gone out of business because of too many sub-prime loans that defaulted. That said, most companies that write stated mortgages ARE NOT going out of business. They just changed the rules on how they can write them. I work for Quicken Loans and we are far from going out of business. We are growing.

So, find out when your mortgage adjusts and plan to take action when appropriate. Get in touch with your mortgage company and make sure you are in the best possible situation. I wouldn’t worry too much. Make sure you make all your payments and keep your credit from dropping and you should have no problems refinancing when you need to.

Good luck.

Loans Mortgage Lenders answers:

Self employed people get regular loans.

25% of working Americans are self employed. I am and I have no problem.

Your problem is bad credit, you need to get that improved.

You do not need much documentation, just your income tax returns for the last 2 years to prove income.

Loans Mortgage Lenders answers:

It will be there and you can’t finance with an instant lien.

Loans Mortgage Lenders answers:

Yes, they do. There are still places in the US where you can buy homes for less than $50k. And they can get mortgages.

Loans Mortgage Lenders answers:

The most confusing thing about public auctions of foreclosures is the process and the upset period. Simply showing up at the courthouse steps and being the highest bidder does no guarantee that you will be buying that home. After that, there is a 10 day upset period in which someone can raise the bid and become the high bidder. At that time, a new 10 day upset period starts. It can go on for a while as each time a new bid is entered and accepted, a new 10 days starts. And when you are bidding on the courthouse steps, you most likely aren’t going to get a great deal as a representative of the lender is going to be there to bid it up (or will have already entered their bid) to the amount they are owned as they aren’t going to give it away.

Be very careful trying to make a quick buck by buying and selling foreclosures. As someone mentioned, already, the infommerials paint a pretty picture about how easy it is and how rich you can get but if it were that simple, everyone would be doing it. You must be capable of doing your own repairs (most of these foreclosures need major repairs) in order to make it even close to profitable. As the old saying goes, if it sounds too good to be true, it probably is.

Loans Mortgage Lenders answers:

Very funny.

Loans Mortgage Lenders answers:

She will have to supply most recent 2 years of W2s (maybe 3 now including 2010) & possibly 2 years tax returns. She will have to show a 2 year work history. If she has not worked 2 straight years she will have to write a letter explaining her gap of employment. They will not check to see if she was on welfare but if any info they require shows that then it will be part of her history. It does not mean she will not get a loan because she was on SSI. That is not a reason to deny a loan. Her ability to pay back the loan, credit & assets will determine if she can get a loan.

Loans Mortgage Lenders answers:

Whether or not your rate is too high depends on whether or not you expect your broker to work for free. Is he charging you an origination fee? There is no way you will get out of paying the upfront MIP on an FHA loan which is financed in the loan so deal with it.

This is not 2000 – 2006 when money was cheap and demand for housing was at an all time high. Banks are loosing BILLIONS of dollars every quarter due to mortgage default so I would expect the costs to go up for the foreseeable future. Banks are losing money and closing fewer loans so how else are they going to stay in business? I have already noticed that appraisers are charging more for their services.

Loans Mortgage Lenders answers:

You’re not going to get a good loan for over 100% of value – pay down whichever one you can pay down fastest. If you’re only staying 5 more years, it may be more economical to not refi.

But, if you still want to, go to lendingtree.com and see what you can get. If not now, let anyone who contacts you know that you’re still interested for the future, even if they can’t do anything for you now.

I did that a few years ago – there was nothing available that I was interested in. Over a year later one of the people called me back with a 30 year fixed, 4.875% offer. Needless to say, that’s what I’m sitting with now.

Loans Mortgage Lenders answers:

What ever you do do not get a loan from roseberry loans they send out a contract and once you pay them you can kiss your money good bye as i found out today infact a loan agents on here are scammers be aware dont fall into the same trap i did

Loans Mortgage Lenders answers:

Watch out for scam artists offering better rates stay with a reputable financial institution people offering to get you a super rate are what got this country into the mess it is in

Loans Mortgage Lenders answers:

I don’t know if he will improve his situation.

He needs to look at why his credit is bad. I would have been looking for a less expensive car with lower payments with an interest rate that high. You deserve a better car when you have earned it and can afford it. Meaning you have built good credit and are not skimping for money.

I worked with a guy that made considerably less than I did. He was complaining that he had to move to a cheaper apartment. His new Camaro payments were $550, my two year old Corolla payments were $210. I still have the Corolla after 9 years. A new car would cost me higher insurance rates, higher registration fees and car payment. The money I saved allows me to buy another car for cash if I want.